Does Bonchon reserve the right to contest the validity of laws or regulations that affect the termination of the Bonchon Franchise Agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If any valid, applicable law or regulation of a competent governmental authority with jurisdiction over this Agreement or the parties to this Agreement limits our rights of termination under this Agreement or requires longer notice or cure periods than those set forth above, then this Agreement will be considered modified to conform to the minimum notice, cure periods or restrictions upon termination required by the laws and regulations. We will not, however, be precluded from contesting the validity, enforceability or application of the laws or regulations in any action, proceeding, hearing or dispute relating to this Agreement or the termination of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon retains the right to contest the validity, enforceability, or application of any laws or regulations that may impact the termination of the Franchise Agreement. This is stated in Section 15.06, which addresses legally required notices. Even if a law or regulation requires longer notice or cure periods than those outlined in the agreement, Bonchon is not prevented from challenging the validity of such laws.
For a prospective franchisee, this means that while Bonchon will adhere to minimum legal requirements regarding termination, they reserve the right to legally challenge those requirements. This could potentially lead to disputes over termination terms if Bonchon believes a law or regulation is invalid or doesn't apply.
This clause protects Bonchon's interests by allowing them to argue against laws or regulations that they believe unfairly restrict their ability to terminate a franchise agreement. However, it also introduces an element of uncertainty for the franchisee, as the termination process could become more complex and potentially involve legal action if Bonchon chooses to contest the applicable laws or regulations.